|Near-curve gas prices moved higher on Friday afternoon following a downward revision in temperatures for February. However, the prompt shed from its price as mild weather and healthy wind levels were expected to continue at the start of this week and Norwegian supply was set to improve. Further along the curve, most contracts moved down with little support provided by fuel markets.
|An expected rise in wind levels over the weekend helped Day-Ahead power record a loss on Friday, although a colder weather outlook for February offered support to the rest of the near-curve. A healthy supply outlook for gas helped to limit any upward movement, while prices on the far-curve were almost unchanged as coal and oil markets stabilised.
|There has been little change to short-term weather forecasts and prices display minor losses this morning as the system has opened 20mcm long, with demand levels sitting 24mcm below the seasonal norm. An outage in Norway has also been resolved, resulting in higher flows to the UK. Meanwhile, the oil market displays little movement since Friday’s open and far-curve prices have decreased.
|Wind levels are comfortable this morning and mild weather is expected to continue for the next couple of days, helping towards losses at the front of the power curve this morning. Losses can also be seen at the back of the curve, with minimal movement seen on fuel markets, with a weaker Dollar a factor.
For a breakdown of the current generation mix visit our Power Generation Insights page.
The oil market remains bullish this morning with support provided by a weak Dollar and global production cuts; Brent currently trades just above $70.5/b.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity moved down – closing at 46.15ppt and £46.05/MWh, respectively.
Today’s prices can also be found in an easy to read table on our ‘current UK energy price' page.
Click graph to enlarge
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